How Do You Get A Real Estate Tax Deduction?
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Everybody loves a piece of land. That is the real limited
resource we have on earth. And the government allows us some
deductions on them too.
Real estate tax deduction is a policy whereby owning a piece of
property like your house gives you many tax advantages. Some of
these include:
1. Interest paid on mortgage: permissible unto a maximum if you
have bought your first and second homes within $1.1 million.
2. Fee points: completely deductible points, these are arrived
at when you have taken mortgages. One point converts to 1% of
the original amount and this is literally thousands of dollars
and completely deductible.
3. Equity loan interest: certain rules imposed by
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Internal
Revenue department, but partially deductible as it are loan on
your home credit.
4. Home improvement loan interest: interest on making
improvement but remember, there is a slight difference between a
repair and an improvement. You can flout the rules by knowing
the difference.
5. Home office deduction: if your home doubles up as your office
too, then this is the deduction to make.
6. Selling Costs: these are costs that you normally include like
legal costs, transfer costs advertising and admin costs and so
on.
7. Capital gains exclusion: is a house which you resided for two
years in the past five years, you need not pay any capital gains
tax. Married
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taxpayers can get a maximum limit of $500000 and
4250000 if filed individually.
8. Home moving costs: this is an option available to ones who
are relocating. If you are moving to any other part of the
stator country, claim it.
9. Property Tax: Finally, the real estate tax (property tax)
that you pay to your local government is completely deductible
from your federal income tax.
So you see, taxes are not really that harsh, if you plan and
make the most of it. Just keep those years and eyes open and
make a small payment to those smart tax consultants, they will
ensure they will the rest.
About the author:
Find more about Tax
Deductions
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